Jindal Poly Films plans Rs 300 cr capex

Jindal Poly Films Ltd (JPFL) is investing over Rs 300 crore, a majority of which it raised through a public issue in June, to increase its BOPP (polyproplene films) capacity from 45,000 tonne per annum (tpa) to 1,35,000 tpa by the last quarter of fiscal 2006-07.

Correspondingly the company will also be raising its films coating capacity from 4500 tpa to 18000 tpa and metallising capacity from 26000 tpa to 40000 tpa.

The expansion in the BOPP films capacity will be carried out in the Nashik unit in Maharashtra, where two new lines will be added to the existing two lines. Rated at a capacity of 45,000 tpa each, the new lines are being procured from Bruckner of Germany.

The company expects to bring the third BOPP Film line into active operation in Q2 of Fiscal 2007 while the fourth line is scheduled to be commissioned by Q4 of Fiscal 2007.

The company also plans to double its coating capacity at Nashik by the last quarter of fiscal 2006 and quadruple it by third quarter of fiscal 2007. The present coating capacity of the company stands at 4500 tpa.

Further the company will add two wide width lines of 7000 tpa capacity to its existing four metallising lines by 2007.

"The market opportunity in BOPP Films is immense with growth expectations of 20 per cent domestically and 7 per cent internationally through the year 2008" said Shyam Jindal, managing director, JPFL.

The expansions will be funded through a combination of owned funds and debt.